Hiring Up on Improved Economic Outlook
According to a survey by the National Association of Business Economics, one-third of all participating economists reported that their companies added jobs during Q2 2013; the highest ratio in almost two years. This spate of hiring is thanks to increasing confidence in the modest growth of the economy. Furthermore, 39 percent of survey participants expect their companies to hire more over the next sixth months, also near the two-year high reached in Q1 of this year.
Among the other major findings of the survey:
• 35 percent of respondents saw increased sales during Q2, down from 55 percent in Q1. About 15 percent reported falling sales, up from 9 percent in Q1.
• Profit growth slowed as 21 percent of respondents reported increased profit margins, down from 29 percent in Q1.
• 19 percent of polled economists said their firms were raising wages and salaries, down from 31 percent in April and the lowest since October.
• Just over one-quarter of the economists said their organization was negatively impacted by federal spending cuts and tax increases, up from 16 percent in April. The number of respondents reporting no impact sank to 74 percent, down from 79 percent in April.
Respondents selected rising interest rates as their main concern over the next year, with 17 percent citing it as a primary concern. This number is up from 4 percent in April. Nearly one-third of respondents chose the overall health of the global economy as the biggest concern for their company, especially with the ongoing European, China, and Brazilian financial crises negatively impact U.S. exports.